An escalating Sino-American trade war is creating turmoil in rural America.
"Overall, this is a perfect storm for US farmers," JPMorgan analyst Ann Duignan warned investors.
With a farm crisis currently underway, Duignan downgraded John Deere's stock to underweight, citing fundamentals in the Midwest are "rapidly deteriorating."
And his downgrade was well-timed after Deere's earnings overnight, as Bloomberg reports that Deere & Co. is no longer "cautiously optimistic" as it has been for so long.
The machinery giant reported lower-than-expected earnings and cut its annual guidance as its farmer customers shun major purchases amid uncertainty about demand for their products.
"Ongoing concerns about export-market access, near-term demand for commodities such as soybeans, and a delayed planting season in much of North America are causing farmers to become much more cautious about making major purchases," Chief Executive Officer Sam Allen said in a statement Friday.
And shares are tumbling...